Why power prices are about to go up and down at the same time
A strange thing is about to happen to electricity prices in several states on 1 July, just as it did in Victoria on 1 January: they’re going to go up and down at the same time.
Or at least, that’s what it’s going to look like. The reason for this comes back to the changes that governments and regulators made to the energy market in mid-2019.
In short: they created a ‘default market offer’ or ‘reference price’ that all discounts must now be measured against. So energy deals are now described as ‘10% less than the reference price’ or ‘20% less than the default offer’.
Read the full article here.
Joel Gibson joins John Stanley to explain how electricity prices can go up and down at the same time.
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